Technical analysis: key levels for gold and crude

Gold’s run is enduring a modest pullback, while oil continues to do its best to claw its way off multi-year lows. 

Gold bars
Source: Bloomberg

Gold could see $1224

The price continues to move back from the overnight high, testing the area around $1100.

While hourly indicators are rather extended to the downside, it looks as if a close below $1095 would suggest the early 2016 bounce has run its course. This would then suggest a move back to $1085 and then $1078.

A recovery of $1110 would point towards targets around $1115 and then $1224. 

Brent eyes $35

A bounce may be in for the time being here, especially if Brent can recover the $35 level.

This would clear the way to $37.54, with possible resistance on the way around $36.13.

A turn back below $33.50 would suggest another attempt to break Thursday’s lows around $32.5.

WTI could drop back to $32

The price needs to stage a daily close above $34 to confirm that a rally is in progress, which would clear the way to $35.37 and then $36.50.

A drop back below $33 for WTI would point towards a move back to the lows of yesterday near $32. 

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